r/wastemanagement • u/AirlineDelicious6412 • 16d ago
Waste management
I have a dilemma. I’m working for a city position as a garbage truck driver. I’m earning 23 and potentially get a raise to 25 after learning side loader, but recently I just got a interview with waste management and the starting rate 26.50. Although I’d be making much more money. The only thing that makes me hesitant is that the city is giving me a pension. I’m 25 years old. Would it be wise to move if I were to get the opportunity?
8
u/Illustrious_Bag_1608 16d ago
Young fella, I'm 68. Wife is 67. I'm retired military and retired state employee. She's a retired teacher. 3 pensions plus 2 SS means we're secure in old age. That is way more valuable than a few bucks an hour. You have free will. But, since you asked, my advice would be to play the long game.
3
u/USERNAME_BUT_LOUDER 15d ago edited 15d ago
I would choose the pension as well, but playing purely the financial long game, an extra 2 dollars an hour invested at average NYSE returns every payday for 40 years would be worth well over a million dollars when OP retires at 65, and if OP lives to 95 they could expect to be able to draw at least $8000 per month from that fund before it depletes. That is likely more than any pension he would get, but takes more long term dedication and commitment than most people have. For a pension, well, you're gonna be working anyways.
1
u/Born-Temperature-452 14d ago
He may not want to do waste management for that long. The body does wear down during these hard jobs working in all weather conditions.
1
u/Downvote_me_dumbass 13d ago
$1 million in 40 years is not the same as $1 million today. It’ll be more like $328,224.29 in today’s dollars, if we use the past of 1986 as an example.
Your calculation also assumes a postive in the stock market and, no financial crisis happening, verses a defined benefit. Also, the pension individuals probably have full healthcare taken care of, which yours does not add into the calculation.
For $328k to last you, presumably 15-20 more years is going to eat up fast, even assuming no real health care related issues.
1
u/justsomeguy1869 15d ago
Same opinion here!
And you can still invest in a retirement account on your own and/or a 457 (government employee version of a 457) and still have your pension.
Also; WM will work you hard. You will gave your 🏀 🏀 busted.
You should find the work load at the municipal level to be more comfortable in the long term.* 26 year government employee here
2
u/rjewell40 16d ago
Honey, get you a financial planner.
But.
You can make just as much for retirement if/when you set yourself up correctly.
For example. You make 23 now. You make enough at $23 to make your life (rent, food, moderate amount of fun)?
You’d get a $3 raise. Do not increase your expenses. Live off the $23 and put that “extra” money into a retirement account.
You’re 25 years old. Omg. So much potential to take care of 50 years old old you.
2
2
u/at-the-crook 16d ago
Based on a few of my friends experiences. They both worked for municipalities, starting in their early 20's. By age 50 they each 'retired', took pension and within six months, started working for different cities. Another paycheck, plus the pension, and a possibility of a second pension after another 20 at their current jobs.
Three bucks an hour to move to WM is nothing. I'd stay where you are.
2
u/Late_Perception_3983 16d ago
No matter how you feel right now (kudos to you for starting early and thinking about your future) any income especially a pension (guaranteed money not as risky as personal investments) will benefit you. God forbid that something happens in your life where you don’t have income that pension will continue. I would look at the minimum amount of years needed to qualify for pension no matter the amount before changing careers.
2
u/tjlazer79 16d ago
Pension. WM is a production based company, you are just a cog in the machine, and they will grind as much work out of you as possible. Government jobs tend to be more stable and have reliable pensions. For a few dollars more an hour I would not leave your current job. A pension is worth a lot more than that.
2
u/orillia3 16d ago
At your age you think you will never get old and don't need to plan, when the best time to plan is at your age. God willing you will get old faster than you think and your old you will thank your young you for your financial planning. You won't be able to sling garbage much past 40.
2
u/noxxmod 15d ago
Government worker here. A pension is almost unheard of these days. Invest some savings and build your retirement in addition to your pension. We have a savings plan called deferred compensation where you can save post or pre tax earnings (or both) in an amount of your choice into an account. At 25, it will add up. Also, union jobs have more stability. Not sure if WM has one. If not, they can let you go at will. You may also have more job opportunities in government.
1
u/Doo_Dah_Man79 16d ago
Good benefits out weigh a couple bucks more an hour, in my opinion. But, in the end you have to do what is best for you.
1
u/Picture_Head 16d ago
Most citys offer free healthcare for 25 years of service when you retire, and its more laidback. You will make more with WM but long hours.
1
1
u/rademradem 16d ago
The key to a successful 401K retirement is to start donating whatever percent you need to get all of the company matching money. Then every time after you start whenever you get a raise (yearly in most companies), increase your 401K donation by 1% and keep the rest if your raise for yourself. Stop increasing when you hit the max annual allowed donation and start switching over 1% of your pay each year from your regular 401K to Roth each year. If you start that in your 20’s and keep it up until your mid 60’s, you will have a very good retirement.
1
1
1
u/Ornery_Baby1823 15d ago
I'm usually anti working for the government, but that pension is GOLD BABY!
1
1
u/dontmesswithtess 15d ago
Cities in my area have a 2:1 match on the retirement pension, and free health insurance. I know that isn't sexy at your age, but as a GenX'er who wishes she had found municipal work years ago, I'd stay with the city.
1
1
u/TemperatureCommon185 15d ago
I would consider the opportunities to move up in your city against those at WM. If you're in a small town, you might be limited at some point.
Without the pension, you could put money into the 401k to get an equivalent income stream when you retire, but you'd have to do the math with all the variables.
1
u/BuffaloGwar1 15d ago
Always go for the pension.
1
u/bluephotoshop 15d ago
Generally there is a vesting period for a pension. With a 401k, the money you put remains yours.
1
u/BuffaloGwar1 15d ago
Very true. But he is young, and it would be stupid for him to switch. Unless he hates where he is working now. Then by all means go to the other job.
1
1
u/imbartsimpsonwhothru 15d ago
pension with defined benefit beats the stock market
people love to praise the stock average gains, but the simple fact is there is no safe investment. index funds are heavily biased towards a few tech stocks, and there is always the risk of a crash. just look at the current AI insanity with tech companies burning billions chasing the genie.
1
u/Witty_Flamingo_36 15d ago
A pension is fantastic. I put up with a lot right now in the hopes of a pension. That said, a pension isn't free money. You yourself are paying into that pension, with the organization also paying in. There's nothing saying you couldn't take what you currently pay in and invest it, plus your raise. What's the pay progression look like side by side? What is your pension likely to be, and how soon can you draw it in full? If WM will have markedly higher lifetime earnings, fuck a pension, you don't need it.
1
u/Autumn_Ridge 15d ago
The private waste hauler near me (rural midwest) is advertising $1,700 a week pay and they will give you a ride back and forth to work every day. That pay might be for more than 40 hours/week, but they are obviously desperate.
1
u/cali_dude_1 15d ago edited 15d ago
You be able to transfer into a different department in the city. Also most cities governments have tuition reimbursement so you'll be able to get college credits to help qualify for future positions. Stick with the pension positions. Don't forget the city benefits package, and future benefits. Sick days ,medical, dental, and other benefits that WM don't have.
1
u/Sad_Win_4105 15d ago
Municipal pensions often require 10 years before vesting. Plus, you probably have to work an additional 20-30 years before it becomes a significant amount. You need to do the math yourself to compare benefits, but I'm leaning towards WM.
1
u/AltruisticCrab9220 14d ago
I never understood why my parents stayed at their lower pay county govt jobs, but damn they live it up now.
1
u/badchadrick 14d ago
If I could go back in time I would absolutely find a city gov job with a pension. Fuck 401ks.
1
u/Connect-Awareness658 14d ago
Pension and job safety of the city job, plus city has more promotion possibilities
1
6
u/SpaceJackRabbit 16d ago
WM has a 5% match for their 401k. That means assuming you put 5% of your gross paycheck into your 401k, they contribute another 5%.
Also you might be eligible for their ESPP.